Security Bank sign raised at Scharbauer ballpark

Published 11:49 am, Wednesday, January 29, 2014

By the 25th year, the city expects to bring in about $200,000. If the agreement lasts the entire 25-year term, it would bring in about $3.6 million.

By the 25th year, the city expects to bring in about $200,000. If the agreement lasts the entire 25-year term, it would bring in about $3.6 million.

Photo: Tim Fischer

Security Bank sign raised at Scharbauer ballpark

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A new Security Bank Ballpark sign was unveiled to the public Wednesday during a ceremony at the Scharbauer Sports Complex.

Security Bank bought the naming rights to the baseball park last year, but the deal did not take effect until Jan. 1.

The agreement between the city of Midland and Security Bank is set to last 25 years, but can be terminated after five years, according to Tina Jauz, the city’s director of community services.

The partnership will bring $120,000 to the city each year for the first five years, Jauz said. After that, there will be an average 3 percent escalation factor that lasts through the remaining 20 years, she said.

By the 25th year, the city expects to bring in about $200,000, Jauz said. If the agreement lasts the entire 25-year term, it would bring in about $3.6 million.

The extra money from the naming rights deal will help the city pay for operational costs of the stadium, said J. Ross Lacy, District 4 councilman, who spoke at the ceremony.

It costs about $3 million each year to operate the complex, Lacy said.

The city asked companies last year to submit proposals for naming rights to the stadium, which was named First American Bank Ballpark when it first opened in 2002. The name changed to Citibank Ballpark after First American Bank was bought out by Citibank in 2005.

Citibank gave the city a year’s notice in December 2012, indicating it no longer wanted naming rights for the stadium, Jauz said.

Security Bank was the only company to submit a proposal for the naming rights, she said.

But the city hopes the partnership lasts for many years, despite the five-year out clause, Jauz said.

“It wouldn’t be our choice to do this again in five years,” she said.

RockHounds General Manager Monty Hoppel said it’s essential to the organization to have a third-party company sponsor the ballpark.

Out-of-towners are more likely to visit the ballpark if there is a name they recognize associated with the field, he said. And Security Bank is often promoted in cities outside of Midland, he said.

Security Bank is primarily located around the Permian Basin and San Antonio areas, which differs from Citibank’s multinational presence.

Jim Smitherman, Security Bank’s chief executive, said his company is excited to expand its name in Midland by taking ownership of the ballpark’s naming rights.

“We’re proud to be a part of the RockHounds and what they do to this community,” Smitherman said. “Twenty-five years worth of commitment is a big deal for us.”

In addition to the new sign on the front of the stadium, fans can also expect the Security Bank logo to pop up several other places, Hoppel said. The logo will be plastered on the field, magnetic schedules, cups and pocket schedules, he said.